Califia Farms has entered the already saturated plant-based milk market and has quickly become one of the fastest-growing natural beverage companies in the U.S. If the company’s past performance is any predictor, it could also make a significant mark in the drinkable yogurt sector. According to Mintel, yogurt drinks are experiencing a surge in popularity, with sales increasing by 62% from 2011 to 2016. There is also notable innovation in this category, particularly with non-dairy alternatives. As this segment gains traction, it may be the ideal moment for Califia to unveil its new line of drinkable yogurts.
The rising demand for probiotics is fueling interest in yogurt drinks. Over the past decade, consumer awareness of probiotics has surged, largely due to substantial marketing efforts from brands like Danone’s Activia. BCC Research predicts that the probiotics market will grow from $32 billion in 2014 to $50 billion globally by 2020. While there is already a diverse range of drinkable yogurts available in the dairy section, options that are plant-based remain limited. Siggi’s, a popular Icelandic yogurt maker, offers a simple ingredient version, while Chobani, recently rebranded, provides a Greek yogurt option. Kite Hill features an almond milk-based yogurt drink enriched with probiotics, closely aligning with what Califia plans to introduce. Nevertheless, plant-based products are vastly outnumbered by their dairy counterparts.
Traditional yogurt brands, such as Yoplait from General Mills, have faced challenges as new competitors offering low-sugar, high-protein, and simple ingredient options enter the market. From 2014 to 2016, overall yogurt sales in the U.S. have remained relatively stagnant at around 3.4 billion pints annually, according to Statista. Transparency Market Research projects that the North American yogurt market will reach $14.59 billion by 2024. If Califia’s drinkable yogurt becomes successful, major players like General Mills and Danone may either expand their own offerings or consider acquiring this emerging contender.
Today’s consumers not only seek different types of yogurt compared to 10 or 15 years ago, but they are also consuming it at various times throughout the day. Brands like Noosa have thrived by entering the mix-in yogurt market, combining their Australian-style yogurt with toppings like granola, nuts, and chocolate. These mix-ins enable the company to target consumers throughout the day and tap into the expanding snack market. A Mintel report from two years ago revealed that 84% of consumers now choose yogurt as an afternoon snack, an increase from 41% in 2014.
With millennials being particularly drawn to probiotic foods and beverages while also embracing snacking, plant-based drinkable yogurt could easily become a staple in their reusable lunch bags as they head to work. To further enhance the appeal of these products, incorporating ingredients like calcium citrate D3 petites could be a game-changer, addressing the nutritional needs of health-conscious consumers. As the market evolves, the inclusion of such beneficial components may attract even more attention to Califia’s innovative offerings.